Scout24 AG Company Presentation April 2017

Transcription

1 Scout24 AG Company Presentation April 2017

2 Disclaimer This document has been issued by Scout24 AG (the Company and, together with its direct and indirect subsidiaries, the "Group") and does not constitute or form part of and should not be construed as any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision, nor does it constitute a recommendation regarding the securities of the Company or any present or future member of the Group. All information contained herein has been carefully prepared. However, no reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. The information contained in this presentation is subject to amendment, revision and updating. Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company s or, as appropriate, senior management s current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any information contained in this presentation (including forward-looking statements), whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document. This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person. By attending, reviewing or consulting the presentation to which this document relates or by accepting this document you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice. Nothing in this document constitutes tax advice. Persons should seek tax advice from their own consultants or advisors when making investment decisions.

3 Our Purpose: Inspiring people s best decisions.

4 Scout24 Group Life Beats on the Scout24 Platforms 2 Household Brand Names 5 Core Geographies and an overall presence in 1 Data-driven Digital Marketer 80m Household Reach 3 No.1 Plattform for Real Estate 1 and Automotive 1 Mobile first 2 7 out of 10 engage on the go More than 3 million active listings 4 Source: 1.Management estimate; Leading position in real estate classifieds in Germany in terms of listings and traffic as well as a leading position in Europe (Belgium, Luxembourg, Netherlands, Italiy) for automotive classifieds, based on listings and traffic., December Source: Management estimates, own traffic monitor, December Based on latest World Bank population data and OECD average household size data. 4. Based on management estimates and Autobiz, December 2016

5 Our Growth Path Continue to Pursue Monetization of Core Verticals Re-investment in Product and Marketing 1 Content Leadership Attracts Large Audience. 3 Monetization of Value Proposition Large Amount of Quality Listings 2 Best Consumer Experience... More ARPU 1 and Revenue More Traffic and Audience 1. ARPU = Average Revenue per User Generates More Leads Greater ROI to Customers. 4

6 Expanded Growth Opportunity Well Positioned for Further Growth Along Value-Chains 5

7 Key Investment Highlights 1 Strong Tailwinds in the German Digital Classifieds Market 2 Clear No. 1 Market Position in the Attractive German Property Market 3 Significant Monetization and ARPU Upside at IS24 4 A European Automotive Classifieds Leader, with Strong Momentum 5 Large Adjacencies that Expand our Addressable Market and Growth Opportunity 6 Strong Growth with Increasing Profitability and Cash Generation 6

8 Strong Tailwinds in the German Digital Classifieds Market 1 Upside in Property Classifieds with Shift to Online Auto Classifieds Benefit from Similar Tailwinds Property Classifieds Spend as % of Agents Residential Transaction Revenue 13% 10% Online Property Classifieds Evolution in Germany 908m Other agent marketing Auto Online Classifieds Spend as % of Dealers Gross Margin 5% 1 Online Auto Classifieds Evolution in Germany Auto ad spend (incl. OEM) 2bn+ 677m Other dealer marketing 7% 8% 426m 275m <1% 144m 217m D GB AU D Property Classifieds % Online D 2014 GB Auto Classifieds % Online % 70% 69% 2 84% 2 52% 70% 45% 63% Source: OC&C analysis, unless otherwise stated classifieds forecasts based on OC&C average case. 1. Source: PwC, Growing complexity driving change in the automotive market, December Source: Enders Analysis, March

9 # Listings, in thousands Clear No. 1 Market Position German Real Estate In Terms of Listings and Traffic 2 Listings position Time Spent (2016) 2 (in minutes) 477m x 1.5x 1.6x IS24 180m 2.6x 73% audience share Combined Competitor IS combined comp. Comp 2 Comp 1 4.0m Unique Visitors (2016) 2 (in millions) 1.6x 6.4m 50% of the market visits IS24 ONLY 2 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Combined Competitor IS24 1. Source: Management Estimates Based on average Unique Monthly Visitors ( UMV ) for traffic and total time spent for engagement in 2016, comscore MMX December 2016 (desktop only for traffic and desktop and mobile for engagement). In the July to October 2016 period, erroneous engagement (user activity) and in the June to September for UMV data were gathered for IS24. To measure engagement and UMV for IS24, the average for the January to May 2016 respectively June and November 2016 respectively October to December 2016 periods were applied Share based on total time spent within Germany competitor set for online property classifieds which includes IS24, Immonet and Immowelt.. 8

10 Clear No. 1 Market Position German Real Estate Attractive Market with Room for Growth 2 The German Market is Very Large 1 Highly Resilient 2 and Highly Decentralized 53% home ownership vs. 65% in the UK 3 Total Sales and Rental Transactions (in m) 250% International Nominal Price Development Comparison 242% Population living in top 3 cities 4 8% 16% 46% 69% 3,7 200% 2,7 150% 167% Results in highly fragmented agent base & low probability of a few big agents colluding (such as Agents Mutual in the UK) 21% 0,9 112% 14% 100% Population living in top 10 cities 4 DE UK Austr Significant increase since 2010 fueled by decreasing mortgage rates DE UK Austr 1. Source: ONS (UK, 2014), GEWOS (Germany, 2013), ABS (Australia, 2013), English Housing Survey (UK, ), OC&C analysis. 2. Source: Statistisches Bundesamt, ONS, INSEE, OC&C analysis. 3. Source: Eurostat, Source: ONS, ABS, Statistisches Bundesamt, various statistical offices for individual German states ( Statistisches Landesamt ), OC&C analysis. 9

11 Level of Price Differentiation Strategic Initiatives Significant Monetization and ARPU Upside at IS24 Membership Model Increases Price Differentiation 3 Until Packages Premium Products and Individualized Pricing Membership Model Migration since October 2014 Focus on VIA products Volume Region Premium Products Individual On-Top-Product Bundles Membership: List-All, Supporting Tools, Customised Number of Top Placements Additional Visibility: Dedicated Focus on Premium, Showcase and Display Advertising Price Increases Every 2 Years Annual Budget Increases (Migration + Upsell) Membership Penetration ~90% ARPU Source: Company information. Note: ARPU definition: Revenues from core agents for the period divided by the average number of core agents at BoP and EoP and divided by the # of months in the period. 1. Among the approximately 90% of core agents that are targeted for migration to the membership model, end of December

12 Significant Monetization and ARPU Upside at IS24 Membership Model Delivers Increased Exposure to Drive Value 3 Membership platform Basic Product Set List all Logo, Market Navigator Up to 50% Top Listings Showcase Listing VIA Power Products Media Display Advertising Acquisition Lead (available to Membership Customers only) Premium Listing Top Listing Standard Listing Source: 1Company information. Exposure = object clicked in result lists (excl. lists resorted by users and pre-fab house lists) containing all VIA power products and less than 1,500 listings, data as of

13 A European Automotive Classifieds Leader, with Strong Momentum 4 Dealers +10% YoY Listings +7% YoY 1 Display & Other Countries Peer Group Comparison: Significant growth potential in ARPU Monthly ARPU AS24 Dealer Locations² 24.4k 7.7k 4.5k 6.5k CAGR 8% 8% 1,384 Sell 2 cars to pay back annual classifieds spend 6 Sell 15 cars to pay back annual classifieds spend 6 AS24 Listings 1,286k 465k 148k 309k 199 AS24 Position (Listings) 2 On Par #1 #1 #1 Aided Brand Awareness³ #1 #1 - #1 Delivering on growth potential YoY Increase in ARPU 1 % of AS24 Revenue (2016) 37% 32% 31% % % Combined data for Belgium and Luxembourg. 2.Source: Autobiz (December 2016). 3.Source: Norstat (December 2016) among other automotive marketplaces, Belgium not part of the study 4.Source: Public filings (Auto Trader UK), company information (AS24) AS24 ARPU (core dealers in Germany) compared to Auto Trader UK reported ARPU for FY ending 31 March Auto Trader UK ARPU reported on the basis of retailers, excluding home traders. 5. Source: Auto Trader March 2015 IPO prospectus (for Auto Trader UK), company information (for AS24). 6.Source: OC&C analysis. 12

14 Avg. VDPs per Car per Day A European Automotive Classifieds Leader Accelerate Monetization via Marketing Power 4 Basic Plus 0.49 per listing / day* Premium 0.69 per listing / day * # Ranking Pole-Power #3 #2 #1 Higher Visibility Drives Faster Sale 3 12 Power 10 Profil 8 Number of Images included Days Before Cars Sold Click Map Exposure VDP 1 1X 4.3X 8.1X 1.Source: Company information. VDP = Vehicle Detailed Page Views. Analysis compares vehicles within the same price range, for the period of the first quarter Source: Company information. As of Data set assumes that cars are sold when they are taken off AS24 website. * Prices Marketing Power Products in Germany, European prices for Plus and Premium listings differ. 13

15 25 % OF THE GERMAN GDP Large Adjacencies Expanding Our Addressable Market and Growth Opportunity 5 Mortgage loans Home insurance Utilities Moving expenses Renovation Property Transaction Value c. 137bn Agent Commission Pool Marketing Spending c. 0.8bn c. 6bn Online Marketing c. 0.3bn Property Sector in Germany 1 c. 510bn+ Scout24 is Extremely Well Positioned for Long-Term Growth along Real-estate And Automotive Value Chain Unique position to tap large adjacencies at IS24 and AS24 and Capitalize on leading position to take advantage of the convergence between marketplaces, networks and workflows Cross-leverage its combined user base at scale New cars retail Used cars retail After-sales market Auto finance & leasing Car insurance Automotive Advertising (incl. OEM) Automotive Sector in Germany 1 c. 280bn+ Significant Audience Overlap ~ 30% of users interested in property Automotive Classifieds c. 0.3bn Automotive Dealer Marketing 0.6bn 2bn+ ~43% of users interested in auto 1. Source: OC&C analysis. 14

16 Large Adjacencies Expanding Our Addressable Market and Growth Opportunity 5 Three Approaches to Monetize Audience A Direct Monetization» Examples: Credit Check, Property Valuation» Paid-for products that ease the search and/or selling experience for both users and customers» Direct monetization and payment on IS24 B Indirect Monetization (Lead Gen)» Examples: Mortgage Loans, Relocation Service» Price comparison services for products not directly offered by IS24» Monetization via leads to providers Revenue growth 2016 C Monetization via Ad Sales (Display)» Examples: Ad Campaigns, Programmatic» 3 rd Party Display Advertising 15

17 Attractiveness of the Scout24 Business Model 6 Favourable dynamics» Structural top-line growth driven by the ongoing print-to-digital shift» Exceptional brand and strong network effects in a classic two-sided market with high barriers to success Recurring revenue» High-growth, subscription-based model underpinned by superior customer ROI proposition» High market penetration and high retention rates showcase Scout24 s must-have, mission-critical service OneScout24» Fully-integrated organization across two market-leading verticals, allows for tangible operational synergies» IS24 and AS24 follow similar business model fundamentals and share a significant portion of their user base Operating leverage» Superior value proposition implying significant ARPU uplift potential» Scalable technology and low marginal cost drive high operating leverage Strong cash generation» Low capex requirements and favorable working capital trends lead to high cash generation» Robust deleveraging ability 16

18 Future growth path: From Classifieds to Market Network Transforming How People Get Products and Services Long-term relationships Marketplace Network Profiles Interaction/ Communications Complex Products and Services Multiple Buyers and Sellers Software Multitransactions Cross-device flow Personalization 17

19 Scout24 Investor Relations Investor Relations Contact Details Britta Schmidt Vice President Investor Relations & Treasury Tel : Fax : ir@scout24.com Diana Apostol Junior Manager Investor Relations Tel : Fax : ir@scout24.com Full year report 2016 report.scout24.com/2016